Most likely, the only time we lost sleep over money as kids was waiting for the tooth fairy to leave a quarter under our pillow in exchange for a baby tooth.
Adults warned us that with independence came responsibilities to take care of ourselves and our loved ones. We hate to admit it, but they were on to something.
In adulthood, financial stress can affect our waking hours and impact our ability to get a good night’s sleep. Our recent survey found that money was the top reason why Americans of all generations are struggling to sleep.
We spoke to mental health and financial experts to better understand financial insomnia and get their advice on ways to manage it.
What is financial insomnia?
Financial insomnia is when money stress interferes with your ability to fall—or stay—asleep. Whether you’re lying awake staring at the ceiling or waking up at 3 am in a cold sweat, the heaviness of debt, bills, rent, or job security can be crushing.
“Your mind tends to spiral with ‘what ifs.’ What if I lose my job? What if an emergency happens? What if I can’t cover my bills?” says Emma Lin, MD, a pulmonary and sleep medicine physician.
This overwhelming cycle of negative thinking triggers the body’s fight-or-flight response, flooding your systems with cortisol and making it nearly impossible to relax.
To calm your nerves, you may try to solve your financial issues from a place of fear, duress, and isolation, which only exacerbates the situation.
Financial insomnia is when money stress interferes with your ability to fall—or stay—asleep.
Causes of financial insomnia
Debt (credit cards, student, and personal loans are a few), unexpected bills, or losing your job top the list of major financial stressors that hijack people’s sleep.
Other factors include limited savings, societal pressures, work instability, and family planning. Underearning or being vague about your expenses can also keep your mind racing when it should be resting.
How financial stress impacts sleep
Money fears can derail even the most mindful bedtime routines. These thoughts keep the brain on overdrive when it should be powering down—and oftentimes, the harder you try to quiet it, the more challenging it is to find a sense of calm.
A rise in stress hormones can contribute to shallow breathing, heart palpitations, anxiety, overwhelm, muscle tension, and disrupted melatonin production. These symptoms lead to sleep deprivation and compromise the quality of your sleep.
Without solid, uninterrupted sleep, you might drag our heels during the day and feel irritable, overwhelmed, or anxious.
The same financial stressors responsible for the dark circles under your eyes and brain fog are harder to get a handle on when you’re mentally and physically exhausted.
The cyclical pattern leads to poor decision-making when it comes to money, from missing bill due dates to impulse spending for temporary relief.
These quick fixes can cause deeper financial holes and more frequent financial insomnia, leading to a feeling of hopelessness.
“Financial stress can be sleep’s worst enemy, and bad sleep leads to poor money decisions,” notes says Antje Eggersdorfer, business and finance expert at Seton.de. You may find yourself spending money you don’t have, or not checking your bank balance because it’s stressful. It’s a vicious cycle that’s difficult to break.”
How to combat financial insomnia
So, which do you address first: your financial situation or getting a good night’s rest? Experts advise taking small steps with both.
Finding a good therapist can help you fall asleep and release the grip of financial insomnia on your nights and days.
Stacey Ross, a mental health specialist with Addiction Resource, recommends seeking someone who has experience with CBT-I (Cognitive Behavioral Therapy for Insomnia), which trains your brain to relax at night, regardless of any emotional weight you’re carrying.
No matter how serious your financial situation is, you have control over creating a calming bedtime ritual.
Turning off your phone, avoiding checking account balances, and listening to a guided meditation can help you fall asleep faster and increase your chances of sleeping through the night, leading to a deeper, more restorative rest.
Eggersdorfer suggests these steps for approaching your finances:
- Create a simple plan. Don’t try to do everything at once.
- Utilize tools like auto-pay or savings apps.
- Save something, no matter how small.
- Speak to a friend, coach, or financial advisor. You don’t have to struggle with money stress alone.
FAQs
How do you fix stress-induced insomnia?
Since money fear and financial insomnia are inseparable, taking baby steps in both areas can help alleviate the pressure and improve your sleep health. Turn off your devices and use relaxation tools to clear your mind before bed. Consider seeing a therapist who can support you while you take small actions to improve your financial situation.
What can you do if you’re struggling financially?
Don’t try to fix your problems all at once or on your own. Speaking to a financial advisor or even a trusted friend can help you feel less alone and find some relief. It may seem counterintuitive, but investing in a money manager who provides tools and a personalized roadmap to address your specific concerns can alleviate stress and overwhelm, allowing you to rest soundly and get your finances back on track.
Trouble snoozing? Check out our guide to the top ways to fall asleep fast.
